Three-quarters of employees say that it’s important to understand their personal finances and have enough medical insurance. And while most have done a good job learning what they need to know, 38 percent admitted to knowing “little to nothing” about their employee benefits in the 2015 MassMutual Employee Benefits Security Study. These people cited “difficulty, time, and a lack of information about where to go and who to trust as the reasons for not knowing more,” according to the study report.
That lack of financial knowledge affects productivity. Forty percent of all employees surveyed said their personal finances created a “distraction” at work. Millennials (people ages 18-34), Hispanics and parents are the groups most likely to say their finances create a distraction and who are most likely to spend more time on their personal finances and employer-sponsored benefits.
What can employers do? Seventy three percent of respondents would likely use an online tool to manage their retirement, healthcare and other types of insurance if it were available free, particularly if it were provided by a “trusted and respected financial services company.” Targeting education to specific demographic groups could also help. Contact USI for more on preparing employees and educating them on the financial impact of their benefits.